Hi there - I'm new to the forum and recently I've been struggling to figure out the right balance for retirement funds.
As it stands today, I have much more in pre-tax retirement funds (401K, Rollover IRAs and SEP IRA) than I do in post-tax funds (e.g. brokerage accounts). It's probably like a 10:1 ratio right now. So if I had $1M in combined pre-tax accounts, I probably have $100k in post-tax investments (not counting any free cash that I currently have).
That doesn't feel right to me for some reason and I'm wondering if I need to start over investing in post-tax brokerage accounts in order to balance it out? I don't understand how I could retire before 59.5 without incurring a ton of penalties, etc for tapping into pre-tax accounts too early. The only way to do it (from what I see) is to build up more substantial post-tax investments. Unless I'm missing something ... I still have 15-20 years to go however.
Am I thinking about this wrong ? Can someone please help me think through this?![:confused]( "confused")
As it stands today, I have much more in pre-tax retirement funds (401K, Rollover IRAs and SEP IRA) than I do in post-tax funds (e.g. brokerage accounts). It's probably like a 10:1 ratio right now. So if I had $1M in combined pre-tax accounts, I probably have $100k in post-tax investments (not counting any free cash that I currently have).
That doesn't feel right to me for some reason and I'm wondering if I need to start over investing in post-tax brokerage accounts in order to balance it out? I don't understand how I could retire before 59.5 without incurring a ton of penalties, etc for tapping into pre-tax accounts too early. The only way to do it (from what I see) is to build up more substantial post-tax investments. Unless I'm missing something ... I still have 15-20 years to go however.
Am I thinking about this wrong ? Can someone please help me think through this?
Statistics: Posted by Grimlock — Wed Jan 10, 2024 2:07 pm — Replies 11 — Views 512